2014

Hub Group, Inc. Reports Record Third Quarter 2012 Earnings

DOWNERS GROVE, Ill., Oct. 22, 2012 /PRNewswire/ -- Hub Group, Inc. (NASDAQ: HUBG) today announced financial results for the quarter ended September 30, 2012.

Hub Group reported record net income of $18.5 million for the third quarter ended September 30, 2012, an increase of 14% compared to the third quarter of 2011.  Diluted earnings per share for the third quarter of 2012 was $0.50.   

Hub Group's third quarter 2011 pre-tax income included approximately $1.1 million of costs related to the Mode Transportation integration and Hub's Truck Brokerage restructuring.  Excluding the effects of these costs, non-GAAP earnings per share was $0.46 for the 2011 third quarter (see table below).  Earnings per share increased 9% when compared with the non-GAAP earnings per share in the prior year period. 

The Hub segment's revenue increased 10% to $619 million.  Third quarter intermodal revenue increased 11% to $444 million.  The increase was primarily attributable to 9% volume growth.  Truck brokerage revenue increased 6% to $88 million this quarter.  Third quarter Unyson Logistics revenue increased 14% to $87 million.  The Hub segment's operating income was $25.3 million

The Mode segment's revenue increased 1% to $200 million for the third quarter.  Operating income was $5.0 million

Hub Group ended the quarter with $80 million in cash.

CONFERENCE CALL

Hub will hold a conference call at 5:30 p.m. Eastern Time on Monday, October 22, 2012 to discuss its third quarter results and outlook for the year.

Hosting the conference call will be David P. Yeager, Chairman and Chief Executive Officer, and Terri A. Pizzuto, Executive Vice-President, Chief Financial Officer and Treasurer.

This call is being webcast and can be accessed through the Investors link on Hub Group's Web site at www.hubgroup.com.  The webcast is listen-only.  Those interested in participating in the question and answer session should follow the telephone dial-in instructions below.

To participate in the conference call by telephone, please call ten minutes early by dialing (888) 679-8038.  The conference call participant code is 96710868. Participants may pre-register for the call at https://www.theconferencingservice.com/prereg/key.process?key=PR6K8D8R8 .  Pre-registrants will be issued a pin number to use when dialing into the live call which will provide quick access to the conference, bypassing the operator.  The call will be limited to 60 minutes, including questions and answers.

An audio replay will be available through the Investors link on the Company's Web site at www.hubgroup.com. This replay will be available for 30 days.

ABOUT HUB GROUP: Hub Group, Inc. is a leading asset-light freight transportation management company providing comprehensive intermodal, truck brokerage and logistics services. The Company operates through a network of offices and independent agents throughout the United States, Canada and Mexico.

CERTAIN FORWARD-LOOKING STATEMENTS: Statements in this press release that are not historical, including statements about Hub Group's or management's earnings guidance, intentions, beliefs, expectations, representations, projections, plans or predictions of the future, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are inherently uncertain and subject to risks. Such statements should be viewed with caution. Actual results or experience could differ materially from the forward-looking statements as a result of many factors. Factors that could cause actual results to differ materially include the factors listed from time to time in Hub Group's SEC reports including, but not limited to, the annual report on Form 10-K for the year ended December 31, 2011 and the reports on Form 10-Q for the periods ended March 31, 2012 and June 30, 2012.  Hub Group assumes no liability to update any such forward-looking statements.

 

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME

(in thousands, except per share amounts)
















Three Months


Nine Months





Ended September 30,


Ended September 30,





2012


2011


2012


2011

Revenue


$ 804,888


$ 752,179


$ 2,323,085


$ 1,988,759












Transportation costs


713,301


665,478


2,060,398


1,760,022


Gross margin


91,587


86,701


262,687


228,737












Costs and expenses:










Salaries and benefits


31,385


32,002


96,120


91,525


Agent fees and commissions


13,810


13,884


41,106


28,400


General and administrative


14,430


12,612


39,741


37,523


Depreciation and amortization


1,611


1,560


5,008


3,968



Total costs and expenses


61,236


60,058


181,975


161,416












Operating income


30,351


26,643


80,712


67,321












Other income (expense):










Interest expense


(300)


(236)


(908)


(319)


Interest and dividend income


37


41


104


118


Other, net 


(17)


17


(58)


286



Total other (expense) income 

(280)


(178)


(862)


85












Income before provision for income taxes

30,071


26,465


79,850


67,406












Provision for income taxes


11,576


10,189


30,741


26,242












Net income


$   18,495


$   16,276


$      49,109


$      41,164


































Basic earnings per common share

$ 0.50


$ 0.44


$ 1.32


$ 1.12












Diluted earnings per common share

$ 0.50


$ 0.44


$ 1.32


$ 1.11












Basic weighted average number of shares outstanding

37,079


36,923


37,064


36,903

Diluted weighted average number of shares outstanding

37,206


37,065


37,180


37,049












 

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)




















Three Months







Ended September 30, 2012







Hub


Mode


Inter-Segment Elims


Hub Group Consolidated

Revenue



$       619,336


$       199,903


$           (14,351)


$       804,888














Transportation costs



552,071


175,581


(14,351)


713,301


Gross margin



67,265


24,322


-


91,587














Costs and expenses:











Salaries and benefits



27,852


3,533


-


31,385


Agent fees and commissions


401


13,409


-


13,810


General and administrative


12,566


1,864


-


14,430


Depreciation and amortization


1,118


493


-


1,611



Total costs and expenses


41,937


19,299


-


61,236














Operating income



25,328


5,023


-


30,351

 

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)




















Three Months







Ended September 30, 2011







Hub


Mode


Inter-Segment Elims


Hub Group Consolidated

Revenue



$       560,810


$       197,761


$             (6,392)


$       752,179














Transportation costs



497,204


174,666


(6,392)


665,478


Gross margin



63,606


23,095


-


86,701














Costs and expenses:











Salaries and benefits



26,884


5,118


-


32,002


Agent fees and commissions


660


13,224


-


13,884


General and administrative


10,141


2,471


-


12,612


Depreciation and amortization


1,003


557


-


1,560



Total costs and expenses


38,688


21,370


-


60,058














Operating income



24,918


1,725


-


26,643

 

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)




















Nine Months







Ended September 30, 2012







Hub


Mode


Inter-Segment Elims


Hub Group Consolidated

Revenue



$    1,778,436


$       581,378


$          (36,729)


$    2,323,085














Transportation costs



1,584,844


512,283


(36,729)


2,060,398


Gross margin



193,592


69,095


-


262,687














Costs and expenses:











Salaries and benefits



84,523


11,597


-


96,120


Agent fees and commissions


1,526


39,580


-


41,106


General and administrative


34,004


5,737


-


39,741


Depreciation and amortization


3,338


1,670


-


5,008



Total costs and expenses


123,391


58,584


-


181,975














Operating income



70,201


10,511


-


80,712

 

 

HUB GROUP, INC.

UNAUDITED FINANCIAL INFORMATION BY SEGMENT

(in thousands)






















Nine Months








Ended September 30, 2011








Hub


Mode


Inter-Segment Elims


Hub Group Consolidated

Revenue




$    1,606,607


$       391,009


$           (8,857)


$    1,988,759















Transportation costs




1,423,108


345,771


(8,857)


1,760,022


Gross margin




183,499


45,238


-


228,737















Costs and expenses:












Salaries and benefits




81,796


9,729


-


91,525


Agent fees and commissions



2,049


26,351


-


28,400


General and administrative



32,464


5,059


-


37,523


Depreciation and amortization



2,890


1,078


-


3,968



Total costs and expenses



119,199


42,217


-


161,416















Operating income




64,300


3,021


-


67,321

 

 

HUB GROUP, INC.

UNAUDITED NON-GAAP TO GAAP RECONCILIATION

(earnings per share)




















Three Months


Nine Months


Ended  September 30,


Ended  September 30,




Change

Change




Change

Change


2012

2011

$

%


2012

2011

$

%











Diluted GAAP EPS

$    0.50

$    0.44

$   0.06

13.6%


$    1.32

$    1.11

$    0.21

18.9%











Integration expenses and










restructuring costs

$       -

$    0.02

$ (0.02)



$       -

$    0.06

$   (0.06)












Diluted NON-GAAP EPS (adjusted)

$    0.50

$    0.46

$   0.04

8.7%


$    1.32

$    1.17

$    0.15

12.8%































Diluted Shares

37,206

37,065




37,180

37,049













 

In accordance with U.S. generally accepted accounting principles (GAAP), reported earnings per share include the after-tax impact of the items identifiable in this table. For internal purposes, Hub excludes these items from results when evaluating operating performance. This table and Hub's internal use of non-GAAP earnings per share are not intended to imply, and should not be interpreted as implying, that non-GAAP earnings per share is a better measure of performance than GAAP earnings per share.

 

HUB GROUP, INC.

UNAUDITED CONSOLIDATED BALANCE SHEETS

(in thousands, except share amounts)































September 30,


December 31,









2012


2011












ASSETS








CURRENT ASSETS:







Cash and cash equivalents

$           79,585


$           49,091



Accounts receivable trade, net

385,821


326,537



Accounts receivable other

22,060


23,878



Prepaid taxes



139


2,392



Deferred taxes



4,329


4,838



Prepaid expenses and other current assets

10,972


9,056





TOTAL CURRENT ASSETS

502,906


415,792













Restricted investments


16,529


14,323


Property and equipment, net

151,195


124,587


Other intangibles, net


20,445


21,667


Goodwill, net



263,306


263,470


Other assets



2,161


2,845






TOTAL ASSETS


$         956,542


$         842,684























LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES:







Accounts payable trade


$         237,790


$         204,693



Accounts payable other


22,579


17,289



Accrued payroll



15,551


16,721



Accrued other



47,248


29,962



Current portion of capital lease

2,292


2,237





TOTAL CURRENT LIABILITIES

325,460


270,902













Non-current liabilities


19,239


17,717


Non-current portion of capital lease

21,684


23,436


Deferred taxes



98,769


91,764













STOCKHOLDERS' EQUITY:







Preferred stock, $.01 par value; 2,000,000 shares authorized;







no shares issued or outstanding in 2012 and 2011

-


-



Common stock









Class A: $.01 par value; 97,337,700 shares authorized and 41,224,792 shares issued in 2012 and 2011; 37,105,441 shares outstanding in 2012 and 36,860,260 shares outstanding in 2011

412


412




Class B:  $.01 par value; 662,300 shares authorized; 662,296 shares issued and outstanding in 2012 and 2011

7


7



Additional paid-in capital


166,148


168,800



Purchase price in excess of predecessor basis, net of tax






 benefit of $10,306


(15,458)


(15,458)



Retained earnings


450,297


401,188



Other comprehensive income

2


4



Treasury stock; at cost, 4,119,351 shares in 2012







and 4,364,532 shares in 2011

(110,018)


(116,088)




TOTAL STOCKHOLDERS' EQUITY

491,390


438,865





TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$         956,542


$         842,684

 

HUB GROUP, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)






















Nine Months Ended










September 30,










2012


2011

























Cash flows from operating activities:






Net income




$        49,109


$        41,164


Adjustments to reconcile net income







to net cash provided by operating activities:








Depreciation and amortization 


16,300


10,944




Deferred taxes



7,693


7,189




Compensation expense related to share-based compensation plans

4,826


3,675




Loss (gain) on sale of assets


42


(16)




Excess tax benefits from share-based compensation


(97)


-


Changes in operating assets and liabilities, net of effects of acquisition:







Restricted investments



(2,206)


362




Accounts receivable, net


(57,417)


(57,275)




Prepaid taxes



2,253


167




Prepaid expenses and other current assets


(1,913)


(2,275)




Other assets




685


406




Accounts payable



38,386


29,316




Accrued expenses



8,917


12,881




Non-current liabilities



1,210


(344)






Net cash provided by operating activities


67,788


46,194













Cash flows from investing activities:






Proceeds from sale of equipment


819


316


Purchases of property and equipment


(34,671)


(35,382)


Cash used in acquisitions, net of cash acquired


(425)


(83,057)





Net cash used in investing activities


(34,277)


(118,123)













Cash flows from financing activities:






Proceeds from stock options exercised


46


78


Stock tendered for payments of withholding taxes


(1,800)


(1,513)


Capital lease payments



(1,697)


(185)


Excess tax benefits from share-based compensation


443


1,069





Net cash used in financing activities


(3,008)


(551)


























Effect of exchange rate changes on cash and cash equivalents


(9)


(12)













Net increase (decrease) in cash and cash equivalents


30,494


(72,492)

Cash and cash equivalents beginning of period


49,091


115,144

Cash and cash equivalents end of period


$        79,585


$        42,652

 

SOURCE Hub Group, Inc.



RELATED LINKS
http://www.hubgroup.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.